Modernising the economy.

The article focuses on the modification of the French competition and distribution law and provides suggestions to foreign companies doing business in France. It is stated that the French Law on the Modernization of the Economy (LME) which came into force on August 6, 2008 brought imperative changes to French competition and distribution law. The LME established a new strengthened competition authority replacing the competition council and transferred the powers related to merger control from the Minister of Economy to this entity. Moreover the LME, in order to support small and medium companies has reduced the payment period and has abolished the prohibition of discrimination between distributors. LME has also introduced freely negotiable prices between suppliers and distributors.